News Release

Vietnam

JLL Market Watch Week Jan 08, 2018

2018-01-05T06:00:00Z

by JLL

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1. A modest end to 2017 transactions sets up big for 2018

This year’s merger-and-acquisition movement is coming to a somewhat quiet close in terms the fourth quarter of completions, but deals that have been stuck in due diligence or with approvals are finally moving forward. Activity was led by Chinese, Singaporean, Korean, and Japanese investors, and despite a limited supply of opportunities investor appetite has not receded for income-producing, standing assets across all real estate sectors.​

HCM City’s export revenue reached an estimated US$35.55 billion last year, a year-on-year increase of 16.1 per cent, according to the city Department of Industry and Trade. The department said the city’s exports have changed significantly, to put them in line with the city’s export targets as well as with changes in the economic structure.

According to the HoREA, the real estate s​ector development will continue to be stable and positive. From 2018 to 2020, there will be an adjustment to balance supply and demand. Affordable housings with prices around VND1bn per apartment still have the most buyers. It also predicts cheaper high-end housing in order to attract more customers and more land sales. However, disputes at apartment buildings will become more common and need to be addressed. FDI and overseas remittance will remain important sources of capital.

In 2017, the city recorded an 8.25% increase in gross regional domestic product (GRDP), higher than the 8.05% growth in the previous year. The economic structure shifted towards higher proportion of high-quality, high added value and highly competitive services. The export turnover was valued at US$35.2 billion, up 15.1%